SOL is on fire!!
As you might have noticed, SOL has been pumping insanely the past couple of days. It has been rising into this ascending channel structure. Now that you know the backstory, let's see what the current chart is telling us and also a LONG setup that I've prepared: On the Daily timeframe price found support at the 214 Key level, which also acted as a Point of Control (although bulls aren't as strong as we'd like them to be, overall Price Action is still bullish). Price dumped after bearish RSI formed, and move was caught almost immediately and we saw a sharp increase in price (which also formed some sort of triangle pattern which I do NOT regard as a symmetrical triangle for reasons I won't go over in this post). For our long entry we want price to break above the 230.940 level which would see both a break of the previous swing high and the upper trendline. For this setup we want to target the area around 274.6 which is the top of the channel, although it could break even further.
Entries: 1 - if we break above the 230.940 level with a high volume/high momentum candle, you can enter a trade market order AFTER the breakout candle closes above (this is more risky but you catch most of the move assuming the candle isn't too huge)
2- you can buy the retest of the 230.940 level (maybe round it to 230.95 or 231 to avoid being frontran). This is less risky but a retracement to that level might not happen.
Stop loss can be placed at the swing low (186.2 area or slightly below) - this is a more traditional approach but has the worst Risk to Reward ratio. (Not my personal choice) or below the 50% fib level (at around 202.5).
If price doesn't break to the upside we could see another retest of the bottom trendline.
Entries: 1 - if we break above the 230.940 level with a high volume/high momentum candle, you can enter a trade market order AFTER the breakout candle closes above (this is more risky but you catch most of the move assuming the candle isn't too huge)
2- you can buy the retest of the 230.940 level (maybe round it to 230.95 or 231 to avoid being frontran). This is less risky but a retracement to that level might not happen.
Stop loss can be placed at the swing low (186.2 area or slightly below) - this is a more traditional approach but has the worst Risk to Reward ratio. (Not my personal choice) or below the 50% fib level (at around 202.5).
If price doesn't break to the upside we could see another retest of the bottom trendline.
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